An economy is experiencing high cyclical unemployment alongside a large current account surplus on its balance of payments. Which of the following fiscal policy measures is most likely to help the economy move closer to achieving both macroeconomic objectives?
An increase in the standard rate of personal income tax
A reduction in the standard rate of value added tax (VAT)
A decrease in the central bank's base interest rate
A reduction in government spending on welfare benefits
68 exam-style questions on OCR A Level Economics Fiscal policy. Each one has a worked solution and a mark scheme showing where the marks go.